3 Acres of Land - What to do?

Question

Ok. So I got a deal on 3 acres of land and a SFH in a rural area in North Carolina. The house could be renovated, but it would cost and is basically trashed. I don't know if it is worth fixing up, as the rental market there is not much ($500 or so). The rehab would cost $10,000+.

The way I see it, with 3 acres I could do something bigger.. I am looking for ideas. I am thinking of demolishing the house and clearing the land, putting a couple of septic tanks there and putting some mobile homes on the property. I could probably run 9-10 with no problem. It would just cost..

I just know the land has some potential, as it is a big piece of property. I could also wholesale it to an investor if needed, but it will take some work. The market is a rental market, as it is a rural area. It is in good location as well, less than a mile from the church and the school.

What I am asking for is if anyone has any ideas/suggestions as to what you would do in this situation? My options are endless, but I am hoping someone has something I haven't thought of before...

Thanks.

Justin Tahilramani · Answer

Stephen,

Sounds like the land has some potential. Have you had the land perk tested? What kind of soils do you have? Additionally - you will probably want to check out what the zoning on the land is. Although 3 acres is more than enough for a few MH's, the city/county may not look too kindly upon that if your land isn't properly zoned.

Justin Tahilramani · Answer

@Stephen Dickey - have you contacted the city/county yet? I can't imagine that any municipality would allow you to establish a MH park in a residential area without some sort of preapproval. Additionally, you might do some research on infrastructure costs associated with developing a MH Park. I've read more than once that the 2nd owner of a MH Park is the one that typically stands to make the most ROI. Just my 2 cents...

Stephen Dickey · Answer

@Jessica A. Smith it is zoned for residential use. We would basically need to get the septic people out there to see how many units per tank we could use. We would not fix and flip b/c the reward would not equal the work it would take. @Chris Puckett is is in Lawndale, NC, which is in Cleveland County. Rural area. Land is not cleared and graded - yet. There is still a single family home on the land as well, so it would need to be demolished.

We are going to meet with septic company to see how and what we could do to get the ball rolling. I think we are going to lean in favor of the mobile park. Thanks everyone for your input!

Chris Puckett · Answer

@Stephen Dickey just curious, where is the land?  Is it cleared and graded?

Jessica A. Smith · Answer

I'm going to follow this thread, but I wanted to ask a few questions:

1. Do you know what that area is zone for? Does the county allow mobile homes in that area?

2. Since the numbers don't work for buy and hold how about fix and flip?

Good Luck!

3 Acres of Land - What to do?

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